The Fed’s Chair Has Sole Accountability for the Board’s Diversity and Inclusion

The Chair of the Federal Reserve Board is a Presidentially appointed and Senate-confirmed position. As such, complete accountability belongs to the Chair. The Chair can have others advise him or her, but the accountability for results is 100 percent on the Chair, without exception.

Shiela Clark cannot be relied upon, as she was involved in the abuses (for example, Artis v. Greenspan Bernanke Yellen, as stated many times in this blog).

Sheila Clark’s letter to the EEOC (printed in the Auerbach book, page 123).

In the area of diversity and inclusion, it seems that it is the desire of Fed Chairs to remove this issue from their portfolio and fob it off on functionaries. See the Board’s Office of Inspector General’s audit report, “The Board Can Enhance Its Diversity and Inclusion Efforts,” 2015-MO-B-006, March 31, 2015 (at footnote 62):

The Federal Reserve Act authorizes the Board to delegate any of its functions, other than those pertaining to rulemaking or pertaining principally to monetary and credit policies, to members or employees of the Board, among others. As such, the Chairman delegated the responsibility for the OD&I to the Chief Operating Officer, who in turn delegated it to the Director of the OD&I.

This is incorrect, as the Chair is responsible for more than Federal Open Market Committee functions.

It seems that Chairman Jerome Powell may recognize that one of his duties is being accountable for the Board’s results on diversity and inclusion.  From the Board’s 2018 Office of Women and Minority Inclusion Report to the Congress:

The Board recognizes that collaboration is key for the leaders, stakeholders, and partners who are working toward enhancing diversity, building a culture and climate of inclusion, and having a model EEO program. With this is [in] mind, the ODI director meets with the Chairman of the Board, chief operating officer, chief human capital officer, and senior leadership to discuss priority issues related to EEO, diversity, and inclusion.

Chairman Powell (and his successors) can have staff assist with diversity and inclusion issues, but he is solely accountable for producing the results. Period. Only he has a Presidential commission.